Best Small Business Loans in Ohio in January 2024

Small business loans in Ohio can help local entrepreneurs get the capital they need to purchase equipment, inventory, commercial real estate and more.

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How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Best small business loans in Ohio in January 2024

By Jill A. Chafin and Carissa Chesanek | Edited by Abigail Basset and Janet Schaaf | January 09, 2024
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LenderBest for…Max. loan amountTerm lengthMin. interest rateTime in business
Startups$400,00024 months with possible renewalNot disclosedNot required
Microloans$45,00060 to 84 months0.00%12 months
Women entrepreneurs$500,000120 to 180 months1.50%24 months
Minority entrepreneurs$500,000Up to 180 monthsVaries by programNot specified
Working capitalNot disclosedUp to 120 monthsNot disclosedNot disclosed
Interest-free loans$10,00036 months0.00%Not required
SBA loans$5,000,000Not disclosedNot disclosed24 months (recommended)
Variety of business lending products$500,00012 to 84 monthsNot disclosed36 months
Nationwide banking$200,000Starting at 24 monthsNot disclosedNot disclosed
Learn more about how we chose our picks.

State-wide loan options for Ohio small businesses

If you’re looking for a small business loan in Ohio, here are some options to consider:

GrowNOW: Best for startups

Loan amountsUp to $400,000
Starting interest rateNot disclosed
Term length24 months with possible renewal
Minimum credit scoreNot specified
Minimum time in businessNot required
ProsCons

 Focused on helping new businesses succeed

 Up to a 3% interest rate reduction

 Renewable repayment terms

 Only available to businesses with fewer than 150 employees

 Must have headquarters in Ohio

Ohio Micro-Loan Program: Best for microloans

Loan amounts$10,000 to $45,000
Starting interest rate0.00%
Term length60 to 84 months
Minimum credit scoreNot specified
Minimum time in business12 months
ProsCons

 Interest-free microloans for minority and women entrepreneurs

 Short time-in-business requirement

 Principal place of business must be based in Ohio

 A 10% interest rate applies for loans that go into default

 Blanket lien and/or personal guarantee might be required

Women’s Business Enterprise Loan Program: Best for women entrepreneurs

Loan amounts$45,000 to $500,000
Starting interest rate
1.50% if certified as a Women-Owned Business Enterprise in Ohio, otherwise up to 3%
Term length120 to 180 months
Minimum credit scoreNot specified
Minimum time in business24 months
ProsCons

 Funds specifically for women-owned businesses

 Competitive interest rates

 Flexible repayment terms

 Interest rate increases to 8% if in default

 Collateral and a personal guarantee required

 Must pay an application and commitment fee

Local small business loans in Ohio

Depending on your company’s industry and location, you might qualify for one of the following local Ohio business loans.

Columbus-Franklin County Finance Authority: Best for minority entrepreneurs

Loan amounts$25,000 to $500,000
Starting interest rateVaries by program
Term lengthUp to 180 months
Minimum credit scoreNot specified
Minimum time in businessNot specified
ProsCons

 Loans designed for minority entrepreneurs

 Competitive interest rates

 Available to both for profit and nonprofit businesses

 Extra fees can make the loan more costly than anticipated

 Business must be based in Franklin County, Ohio

 Personal guarantee and collateral is required

Telhio Credit Union: Best for working capital

Loan amountsNot disclosed
Starting interest rateNot disclosed
Term lengthUp to 120 months
Minimum credit scoreNot disclosed
Minimum time in businessNot disclosed
ProsCons

 Funds can be used for training, payroll, marketing, inventory and more

 A one-stop shop with multiple business products

 A team of Business Banking Relationship Managers (BBRMs) will help you with our funding needs

 Lack of information regarding loan amounts, rates and fees

 Must be a member to get lower rates on loans

 Limited physical branches

LISC Greater Cincinnati: Best for interest-free loans

Loan amountsUp to $10,000
Starting interest rate0.00%
Term length36 months
Minimum credit scoreNot required
Minimum time in businessNot required
ProsCons

 Interest-free microloans with no fees

 Priority is given to minority and women entrepreneurs

 Free marketing to help draw in more investors

 Low loan amounts compared to other small business products

 Business owners can’t be in foreclosure or have an active bankruptcy

 Must be comfortable building an online social presence and network

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Nationwide small business loans

If you want a lender with a national presence, these lenders offer various small business financing solutions for Ohio-based companies.

Huntington Bank: Best for SBA loans

Loan amountsUp to $5,000,000
Starting interest rateNot disclosed (subject to SBA maximums)
Term lengthNot disclosed (subject to SBA maximums)
Minimum credit score680 (recommended)
Minimum time in business24 months (recommended)
ProsCons

 Longer terms can help increase cash flow

 Dedicated team of SBA specialists

 Offers multiple small business financing solutions

 Must operate a for-profit business in the U.S.

 Need to have reasonable owner equity to invest

 Doesn’t list specifics on rates, terms or eligibility criteria

KeyBank: Best for variety of business lending products

Loan amounts$10,000 to $500,000
Starting interest rateNot disclosed
Term length12 to 84 months
Minimum credit scoreNot disclosed
Minimum time in business36 months
ProsCons

 Wide selection of business financing solutions

 Offers 100% equipment financing

 Secured and unsecured term loans available

 SBA lending products not available in all U.S. states

 Lack of transparency about rates and fees

 Doesn’t list eligibility criteria for conventional loans

U.S. Bank: Best for nationwide banking

Loan amountsUp to $200,000
Starting interest rateNot disclosed
Term lengthStarting at 24 months
Minimum credit scoreNot disclosed
Minimum time in businessNot disclosed
ProsCons

 A strong, nationwide presence

 Offers 125% financing for equipment

 Smaller loan applications can be completed online

 Doesn’t disclose rates, terms and fees in advance

 As a traditional bank, you’ll likely need a good to excellent credit score

 Some loans require collateral

What to know about small business lending in Ohio

The 989,000-plus small businesses in Ohio help fuel the state’s economy. But operating a business in the state comes with its own challenges, not to mention the bureaucratic headaches of registering with the Ohio Secretary of State and Ohio Department of Taxation.

Small business loans in Ohio are available from state and local government agencies, and can help you to start or expand your business in the Buckeye State. We’ll walk you through the Ohio small business loan options to choose from.

Types of business loans in Ohio

SBA loans

With a portion of the funds guaranteed by the U.S. Small Business Administration (SBA), SBA loans can help underserved small business owners access capital for various purposes. The SBA 7(a) loan can fund day-to-day expenses, while the SBA 504/CDC loan is better suited for more significant projects, like purchasing real estate or equipment.

Term loan

If you need a lump sum of cash at once, consider a business term loan. Short-term business loans are ideal for more immediate needs or emergency expenses. For more substantial investments or projects, a long-term business loan can provide up to $5 million with terms of 10 years or longer.

Line of credit

Similar to a credit card, a business line of credit lets you borrow up to your limit whenever you need extra funds for unexpected or recurring business expenses. Interest is only charged for the amount you withdraw, although some lenders charge additional fees like maintenance and annual fees.

Equipment financing

Equipment financing can help your business get the equipment it needs to efficiently run your business. Equipment loans typically have more lenient eligibility requirements since the equipment acts as collateral, helping reduce lender risk. If your credit score is on the lower side, you can consider an equipment loan for bad credit.

Other funding options for your small business in Ohio

Grants

A small business grant can also help provide financial assistance for your business. This type of funding comes from the federal or local government and is given to small businesses that meet the designated size standards of the U.S. Small Business Administration (SBA). Some places to find small business grants in Ohio can include:

SCORE

SCORE is a nonprofit organization that provides coaching and mentorship to small businesses. Backed by the U.S. Small Business Administration, SCORE also gives opportunities to participate in educational workshops to support your business. You can use the SBA local assistance search tool to find an expert counselor in your community.

Small Business Development Centers

Small Business Development Centers, such as the Ohio Small Business Development Centers (SBDC), offer counseling and training to small businesses on anything from business planning to market research, to both new and existing companies. To find an SBDC near you, search your zip code online for a location near you.

Ohio business loan requirements

When applying for a small business loan in Ohio, pay attention to each lender’s specific business loan requirements. Lenders will typically review the follow criteria and documents:

 Credit score

Minimum credit scores will vary by lender, but it’s generally recommended to have a personal FICO Score within the 600s. Some lenders will also look at your business credit score. You can monitor your score for free with LendingTree Spring.

 Business plan

A business plan helps show your business’ ability to pay back the loan with details on how the company will grow and bring in revenue. A traditional business plan usually showcases the description of the company, the service or product it provides, market analysis and requests for funding.

 Annual revenue

Lenders look at your annual revenue to ensure you have enough cash flow to make loan payments. Annual minimums vary by lender, with the typical range being $36,000 to $480,000 or higher, although certain lenders may accept lower earnings for startup business loans.

 Time in business

In general, leaders require companies to operate for at least one or two years before approving a business loan. However, some online lenders offer loans for startup businesses that have only been operating for simonths or less.

 Collateral and/or personal guarantee

Lenders may require collateral for certain small business loans in order to reduce lender risk, such as with secured business loans. Collateral can be a fixed asset like equipment or real estate, or a financial asset like cash or investments. If you default on your business loan, your lender can seize your collateral for payment. Note that a personal guarantee is only connected to your personal assets.

How to apply for a small business loan in Ohio

If you are ready to take your business to the next level, here are the general steps on how to get a small business loan in Ohio.

Step 1: Pick the right type of business loan for you

Research the different types of small business loans to see which option best suits your business’s immediate and long-term goals. Some lenders only fund certain industries or have restrictions on how you spend the funds.

Step 2: Review your eligibility

Take a quick look at your personal and business credit scores to see if they can meet your potential lenders’ criteria. Boosting your credit score in advance can improve the likelihood of approval. If your credit score falls short, consider adding a creditworthy cosigner to your application.

Step 3: Compare small business lenders

Searching through potential lenders can be time consuming and overwhelming. Start by reading small business lender reviews to help narrow options and avoid scams. Remember, you have multiple options when looking for a small business loan, such as with traditional banks, government lenders and online lenders.

Step 4: Gather required documents

Most lenders will want to see your business licenses, business plan, business tax ID number, personal and business tax returns, a certificate of good standing and business financial statements. Check your lender’s website in advance to ensure you’re prepared.

Step 5: Submit and review offers

You can typically apply for a small business loan online, although certain banks still require an in-person appointment. Read all the fine print to ensure you understand all the details, including prepayment penalties and late charges.

How to compare Ohio business loans

When trying to get a business loan, here are some features that you may want to look for:

  • Interest rates: Business loan interest rates can vary based on the lender, loan product and your credit profile. Fixed interest rates remain the same throughout the duration of your loan, making them easier to plan for repayment, especially with long-term loans that can take years to pay off.
  • Transparent repayment terms: Each lender should provide clear repayment terms so you know not only when your loan needs to be paid off in full but can also compare terms with other lenders.
  • Short-term or long-term: Short-term loans tend to range from three to 24 months, with weekly or daily repayments, while long-term loans can have terms up to ten years or more with monthly payments. The term length will depend on how much funding you need and for what specific expense it will go toward.
  • Collateral: Secured loans are backed by collateral, or an asset such as equipment or real estate, that can be seized by the lender if you should default. If you don’t have a high credit score but have the assets, a secured business loan might help you receive a larger sum of money. An unsecured business loan does not require collateral, so you’ll likely need an excellent credit score to apply.
  • Funding speed: The time it takes to get your funds can vary greatly. Online lenders specialize in quick business loans, making sure you get your money within a few days — although you’ll typically pay a higher price for this convenience. In comparison, SBA loans and traditional banks can take several weeks or months to approve your loan application but often come with better rates and terms.

How we chose the best small business loans in Ohio

We reviewed the leading local and nationwide lenders to determine the best business loans in Ohio. To make our list, lenders must meet the following criteria:

  • Minimum time in business: Options available for companies who have operated for 12 to 36 months.
  • Minimum credit score: Personal credit score requirements of 680 or lower.
  • Rates and terms: We prioritize lenders with a range of loan amounts, competitive rates, limited fees, flexible repayment terms and APR discounts.
  • Repayment experience: We consider each lender’s reputation and overall business practices. We favor lenders that report to all major credit bureaus, offer reliable customer service and provide extra support to customers, like free business coaching.

Frequently asked questions

While newer businesses may not have the revenue to apply with a more traditional lender, that doesn’t necessarily mean you cannot find funding elsewhere. One example that may be an option is an equipment financing loan. These loans look at the value of the equipment and use that as collateral, rather than focusing on the amount of money the business is making.

While many traditional lenders require you to be in business for a year or two to receive funding, entrepreneurs starting a business in Ohio have several options. Microloans are geared toward start-ups, offering up to $50,000 without strict annual revenue requirements. Additionally, many online lenders have lower credit score and revenue requirements for their startup business loans. You can also research startup grants for small businesses in Ohio to see if any fit your criteria.

Yes, there are bad credit loans in Ohio. Some lenders look at other factors besides your credit score when considering you for a loan. If you can offer collateral for the loan, lenders may be willing to look past a lower credit score.